I'm looking at buying an Xbox One next month, with the intent of picking one up dirt cheap on Black Friday and doing the same again in a few years when the updated consoles drop steeply in price.

In order to cut costs, I'm thinking of buying a model with a small hard drive and buying an external drive later. Any reasons why this is a bad idea? Is there any reason to go for the two terabyte version over the 500 gig version!

No reason not to use an external drive. Works great. I have a 500GB Xbone with a 2TB USB 3.0 drive and it works seamlessly.

Nope, its a great idea. I've been using a 2TB external hard drive with my XB1 for a year and it works great.

Awesome. Thanks, folks.

Don't get a 500GB hard drive. Only because I have one myself, and I find that if you have one of these then the more games you install on it the more memory it eats, I've only got 3-4 games already, and yet it's taken something like a quarter of my memory, 4 games only, so don't buy a 500GB hard drive. I would suggest for you to maybe get a 1TB hard drive, if you can afford it.

@ultragamerockx: Did you even read his post? It's cheaper to get a 500GB X1 and then plug a 2TB drive into it. Or splash out on hybrid/SSD drives and make loading games quicker.

The one thing I would say is that if you get an external drive make sure that it is fast enough and has high enough transfer rates to support loading on the fly in games. I know someone who had trouble with one of those little passport externals intended for backups. The Xbox One has a slow hard drive anyway so this is not a tough criteria to meet, but don't go the absolute cheapest possible with your external.

Otherwise I'd definitely recommend going external. Not only does it work flawlessly with the Xbox One (my internal hard drive on the XB One has been filled for a long time and I have had only minor issues, like once a game installed on the internal didn't have room to update, so I had to move something else to the external to make room) but it's super convenient if your system ever breaks or you want to get a Scorpio down the road. Literally plug and play.

Count another vote for the 2TB external drive. The external storage system is virtually perfect. It's seamless with internal storage and easy to move stuff back and forth if you want. And yes, you'll save a boatload. I think my external drive was all of $70.

Cool! Looking forward to picking up the console during Black Friday sales. Figure I'll pick up the hard drive maybe in January or so. Thanks, folks. Your advice, as always, is sterling and appreciated.

Ditto on the 2TB external drive recommendations.